ETF Wrap: We’ve gone to the canines, and extra on the Barstool bro for March Insanity

You just don’t do that in financial services, was the first reaction to Dave Portnoy’s gimmicks. Then everyone made fun of the newbie who didn’t know the basics, such as how to wait until a certain threshold before your fund spreads widely.

But then some serious questions followed.

In the end, it might turn out that having such a large, messy disruption in the middle of an industry that has been doing things one way for a while might not be the worst. As ETF Wrap noted a few weeks ago, this would be ironic as many participants in the ETF industry have long viewed themselves as brave upstart in a world of Wall Streeters.

Nevertheless, there is a strong interest among private investors in smaller, topic-oriented disruptive ETFs, even if the giant asset managers suspect topics such as the development of “ESG” portfolios as different versions of FAANG shares, the suppression of creativity or the direct theft of ideas .

In the case of the Portnoy-backed ETF, there are serious questions about governance and adequacy – not just about archaic traditions that everyone follows, but no one knows exactly why. Still, it should be noted that this sense of authenticity seems to vibrate, even if it is pure marketing fluff.

Thank you for reading.

Rise!

Here at ETF Wrap we want to encourage the free exchange of ideas about … you guessed it … promoting ETFs. And what could be better than encouraging you to freely share your ideas about new ETFs.

To this end, we have decided to run the first annual, completely unofficial, completely unsious ETF ideas competition.

The rules for the FATUCUEIC are as simple as their name. Submit your idea for a new ETF! We’ll pick a winner and runner-up and write about them in an upcoming issue!

The fine print: The competition will open to entries on March 18, 2021 and will end on March 25, 2021 at the end of the day. Submit posts to this address. An entry does not have to be long, but should contain as much information about the idea as we need to evaluate it:

What is your investment thesis? Who is the target group? What gap in the market does it fill? How would it implement these ideas? What types of assets would it hold? Which ticker would you like to have?

We are very fortunate to have our ETF veteran Amrita Nandakumar, currently President of VIA Investment Advisory, a boutique asset manager who sponsors index and active investment strategies, including ETFs, portfolio management and trading services. Prior to that, Nandakumar worked for Van Eck for seven years in the areas of ETF product management as well as strategy and corporate development and previously worked for Vanguard for several years. She has her FINRA Series 24, 7 and 63 accreditations and a leadership role in the New York Chapter of Women in ETFs.

Photo credit: Patrick Nugent

The price for the winner of the FATUCUEIC is mentioned on these pages, and the price for the runner-up is mentioned on these pages (smaller).

If you have any questions, please contact this address. It goes without saying that a “completely unofficial, completely frivolous” competition is intended for fun and entertainment purposes only and that MarketWatch, ETF Wrap, Dow Jones, News Corp. and Nandakumar, her aunts, uncles, and any pet goldfish you are may or may not be entitled to, and we cannot guarantee, any intellectual property you wish to share.

Again: Send your ideas to this email address by March 25, 2021 11:59 a.m. Eastern, ideally with the email subject header ETF Wrap Contest. Good luck!

Trifles traded on the stock exchange

Why do people like to talk about it? Cathie Wood so much? See: Why Do Some People Hate Cathie Wood? by Michael Batnick

After this Tesla was added to the S&P 500 In late 2020, the ETF’s stake in its stocks rose to 7%, according to a Financial Times story. The company’s claim to be environmentally friendly is now under attack due to its investment in Bitcoin. This can cost a certain weighting of the ESG-oriented funds.

Stance Capital, a Boston-based investment advisor specializing in ESG, has has converted its separately managed account strategy into a not fully transparent ETF. At the end of 2020, the separate account composite Stance Equity ESG Large Cap Core had an average annualized net return of 13.38% since launch in January 2014, compared to 12.92% for the S&P 500 Total Return Index. The new ETF STNC, -0.56%, started trading with $ 130 million in assets.

The Invesco QQQ Trust QQQ, -3.06%, is the official ETF of the NCAA and has developed some innovative ways that you can experience March Madness from your living room … or anywhere. Invesco invites everyone to try out an augmented reality game with Grant Hill.

A focus on income clearly underestimates how bad it is American inequality This is a situation made worse by monopolies that are developing in key service sectors such as housing, education, healthcare and, yes. Financial servicesEveryone contributes to prosperity and wealth inequality, according to a new Minneapolis Fed working paper.

Is there an ETF for this?

The investing world has spilled a lot of ink trying to figure out which lockdown trends will last through 2021 and beyond: how much will we zoom in, shop for groceries online or Netflix NFLX, -3.75% -and-chill instead of going to the movies to go

But of all the life changes brought about by the coronavirus, mass pet adoption can be one of the most lovable – even more permanent.

Cocoa Rosenbluth: 13/10 would explain custom baskets while rubbing her belly. Photo courtesy Todd Rosenbluth.

“This is an under-the-radar issue for investing from home because people will still be spending time at home even when the economy opens up,” said Todd Rosenbluth, director of ETF and mutual fund research at CFRA. “This is a potentially more resilient way of investing in the new normal.”

As we know, every dog, and apparently every investment theme, has its day. The ETF for this is the ProShares Pet Care ETF PAWZ, -3.23%.
It has been around since November 2018, it has accumulated $ 267 million in assets and for the past 12 months it blew most benchmarks with a 104% return. PAWZ charges an administration fee of 50 basis points which isn’t too catastrophic.

While consumer-facing pet brands have paws abundant, PAWZ is laden with many stocks that may not be as familiar. In fact, a good chunk of the portfolio is in healthcare names like IDEXX Laboratories, Inc. IDXX (-4.05%) and Dechra Pharmaceuticals PLC, as well as some insurers like Trupanion Inc. TRUP (-12.31%).

As ProShares explains in an investment case analysis on its website, “Owners are increasingly taking care of pets like family members.” Among other things, we provide them with healthcare that is “comparable to ours”.

“For many people, the pet is the first child, and many people tend to pamper their pets,” said Rosenbluth in an interview. Rosenbluth, usually a very good boy, declined to respond to a request from ETF Wrap asking if he was speaking from personal experience.

Rosenbluth added, “I think people are also realizing the cost of owning a pet. It is likely that people will be more focused on how the pet can be a family member more cheaply in the years to come. “

One more update: Many American households are on the verge of profiting from the $ 1.9 trillion coronavius ​​relief bill, and more than some are likely to be spending on their pets.

Visual of the week

First time buyers made up about 40% of buyers in the market for a long time, but the Great Recession set that back. Even now, years later, newbies make up only about 33% of existing property buyers, which is about 90-95% of all sales. The table above shows new homes.

Weekly rap
Last week’s top 5 winners

Breakwave Dry Bulk Shipping ETF BDRY, + 4.26%

17.5%

Global X Uranium ETF URA, -3.20%

13.6%

Cannabis ETF THCX, -4.43%

10.6%

Global X Cannabis ETF POTX, -3.25%

9.5%

Amplify Seymour Cannabis ETF CNBS, -4.27%

8.6%

Source: FactSet, until close of trading on Wednesday March 17th, excluding ETNs and leveraged products

Top 5 losers in the last week

SPDR S&P Oil & Gas Equipment and Services ETF XES, -5.98%

-8.5%

VanEck Vectors Oil Services ETF OIH, -5.85%

-7.7%

Invesco Dynamic Oil & Gas Services ETF PXJ, -6.02%

-7.4%

iShares US Oil Equipment & Services ETF IEZ, -5.63%

-7.1%

Invesco S & P SmallCap Energy ETF PSCE, -8.39%

-4.9%

Source: FactSet, until close of trading on Wednesday March 17th, excluding ETNs and leveraged products

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